SFNC Simmons First National Corporation

Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $65.9 million for the quarter ended September 30, 2020, compared to $81.8 million for the same period in 2019, a decrease of $15.9 million, or 19.5%. Diluted earnings per share were $0.60, a decrease of $0.24, or 28.6%, compared to the same period in the prior year. Included in the third quarter of 2019 results was a one-time after-tax gain on the sale of Visa Inc. class B common stock of $31.7 million.

Included in third quarter 2020 results were $2.5 million in net after-tax merger-related, early retirement program and net branch right-sizing costs. Excluding the impact of these items, core earnings were $68.3 million for the quarter ended September 30, 2020, compared to $84.0 million for the quarter ended September 30, 2019, a decrease of $15.6 million, or 18.6%. Core diluted earnings per share were $0.63, a decrease of $0.24, or 27.6%, from the same period in 2019.

Year-to-date net income for the first nine months of 2020 was $201.9 million, or $1.83 diluted earnings per share, compared to $185.1 million, or $1.94 diluted earnings per share, for the same period in 2019. Excluding $426,000 in net after-tax merger-related, early retirement program and net branch right-sizing costs and the gains on the sales of branches in south Texas and Colorado, year-to-date core earnings for 2020 were $202.3 million, an increase of $3.8 million compared to the same period last year. Core diluted earnings per share for the first nine months of 2020 were $1.83, a decrease of $0.25, or 12.0%, from the same period in 2019.

“We are very proud of our results under these trying conditions. We have experienced very meaningful shifts in consumer habits which we believe will impact our delivery of products and services as well as the retail delivery of everyday amenities. Our investment in digital channels will continue to position our company for these changes and our associates are ready for the new normal,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation.

Selected Highlights:	3rd Qtr 2020	2nd Qtr 2020	3rd Qtr 2019
Net income	$65.9 million	$58.8 million	$81.8 million
Diluted earnings per share	$0.60	$0.54	$0.84
Return on avg assets	1.20%	1.08%	1.83%
Return on avg common equity	8.91%	8.21%	13.70%
Return on tangible common equity (1)	15.45%	14.55%	24.89%
Core earnings (2)	$68.3 million	$60.1 million	$84.0 million
Core diluted earnings per share (2)	$0.63	$0.55	$0.87
Core return on avg assets (2)	1.25%	1.11%	1.88%
Core return on avg common equity (2)	9.24%	8.40%	14.06%
Core return on tangible common equity (1)(2)	16.00%	14.87%	25.52%
Efficiency ratio (3)	54.12%	51.46%	43.77%
Pre-tax, pre-provision (PTPP) earnings (2)	$87.5 million	$97.7 million	$122.6 million

(1)	Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2)	Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)	Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles, as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Loans

($ in billions)	3rd Qtr 2020		2nd Qtr 2020		3rd Qtr 2019
Total loans	$14.02		$14.61		$13.00

Total loans were $14.0 billion at September 30, 2020, an increase of $1.0 billion, or 7.8%, compared to September 30, 2019, primarily due to The Landrum Company (“Landrum”) merger completed during the fourth quarter of 2019. On a linked-quarter basis (September 30, 2020 compared to June 30, 2020), total loans decreased $589.5 million, or 4.0%. The decrease was across most loan categories with the largest decrease in the real estate loan portfolios. Makris stated, “Loan demand is very weak in almost every aspect of our commercial economy.”

Through September 30, 2020, the Company originated approximately 8,200 loans under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, with an average balance of $118,000 per loan. Approximately 93% of the PPP loans had a balance less than $350,000 as of September 30, 2020.

PPP LoansBalance as of September 30, 2020	# ofLoans		Balance($ in millions)
Less than $50,000	5,216	63%	$94.4		10%
$50,000 to $350,000	2,441	30%	$304.8		31%
More than $350,000 to less than $2 million	481	6%	$358.0		37%
$2 million to $10 million	61	1%	$213.3		22%
Total	8,199	100%	$970.5		100%

Deposits

($ in billions)	3rd Qtr 2020		2nd Qtr 2020		3rd Qtr 2019
Total deposits	$16.2		$16.6		$13.5
Non-interest bearing deposits	$4.4		$4.6		$3.1
Interest bearing deposits	$9.0		$9.0		$7.3
Time deposits	$2.8		$3.0		$3.1

Total deposits were $16.2 billion at September 30, 2020, an increase of $2.8 billion, or 20.6%, since September 30, 2019, primarily due to the Landrum merger. On a linked-quarter basis, total deposits decreased $369.5 million, or 2.2%, primarily due to decreases in non-interest bearing and large public fund time deposits.

Net Interest Income

	3rd Qtr2020	2nd Qtr2020	1st Qtr2020	4th Qtr2019	3rd Qtr2019
Loan yield (1)	4.54%	4.84%	5.19%	5.43%	5.47%
Core loan yield (1) (2)	4.29%	4.52%	4.86%	5.00%	5.19%
Security yield (1)	2.60%	2.50%	2.63%	2.73%	2.87%
Cost of interest bearing deposits	0.54%	0.59%	1.03%	1.22%	1.40%
Cost of deposits (3)	0.39%	0.44%	0.80%	0.94%	1.09%
Cost of borrowed funds	1.85%	1.84%	2.06%	2.30%	2.52%
Net interest margin (1)	3.21%	3.42%	3.68%	3.78%	3.82%
Core net interest margin (1) (2)	3.02%	3.18%	3.42%	3.44%	3.59%

(1)	Fully tax equivalent using an effective tax rate of 26.135%.
(2)	Core loan yield and core net interest margin exclude accretion and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)	Includes non-interest bearing deposits.

The Company’s net interest income for the third quarter of 2020 was $153.6 million, an increase of $4.3 million, or 2.9%, from the same period of 2019. The increase in net interest income was primarily due to the decline in the cost of interest-bearing deposits of 86 basis points, which was partially offset by a reduction in the loan yield of 93 basis points. Included in interest income was the yield accretion recognized on loans acquired of $8.9 million and $9.3 million for the third quarters of 2020 and 2019, respectively.

The loan yield was 4.54% for the quarter ended September 30, 2020, while the core loan yield, which excludes the accretion, was 4.29% for the same period. The decrease in the loan yield during the third quarter of 2020 was primarily driven by the lower yielding PPP loans originated during the second and third quarters of 2020. The PPP loan yield was approximately 2.37% during the third quarter of 2020 (including accretion of net fees), which decreased the loan yield by approximately 16 basis points.

Net interest margin (FTE) was 3.21% for the quarter ended September 30, 2020, while the core net interest margin, which excludes the accretion, was 3.02% for the same period. The decrease in the net interest margin during the third quarter of 2020 was primarily driven by additional liquidity created in response to the COVID-19 pandemic and the lower yielding PPP loans originated during the second and third quarters of 2020, which decreased the net interest margin by approximately 30 basis points.

Non-Interest Income

Non-interest income for the third quarter of 2020 was $71.9 million, a decrease of $12.8 million compared to the same period in the previous year, primarily due to the gain on sale of Visa Inc. class B common stock recognized during the prior year period. During the third quarter of 2020, the Company benefited from additional gains on the sale of securities and incremental mortgage lending income driven by the current low mortgage interest rate environment.

Selected Non-Interest Income Items($ in millions)	3rd Qtr2020	2nd Qtr2020	1st Qtr2020	4th Qtr2019	3rd Qtr2019
Service charges on deposit accounts	$10.4	$8.6	$13.3	$13.3	$10.8
Mortgage lending income	$14.0	$12.5	$5.0	$4.0	$4.5
SBA lending income	$0.3	$0.2	$0.3	$0.3	$1.0
Debit and credit card fees	$8.9	$8.0	$7.9	$8.9	$7.1
Gain on sale of securities	$22.3	$0.4	$32.1	$0.4	$7.4
Gain on sale of Visa Inc. class B stock	-	-	-	-	$42.9
Other income	$5.4	$9.8	$12.8	$7.1	$1.8
Core other income (1)(2)	$5.0	$7.6	$6.9	$7.1	$44.7

(1)	Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2)	Core other income includes the gain on sale of Visa Inc. class B common stock.

Non-Interest Expense

Non-interest expense for the third quarter of 2020 was $118.9 million, an increase of $12.1 million compared to the third quarter of 2019. Included in this quarter were $3.3 million of pre-tax non-core items for merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $115.3 million for the third quarter of 2020, an increase of $11.3 million compared to the same period in 2019, primarily the result of the Landrum merger and additional software and technology costs related to the Company’s Next Generation Banking (“NGB”) initiative.

The efficiency ratio for the third quarter of 2020 was 54.12%.

Selected Non-Interest Expense Items($ in millions)	3rd Qtr2020	2nd Qtr2020	1st Qtr2020	4th Qtr2019	3rd Qtr2019
Salaries and employee benefits	$61.1	$57.6	$67.9	$63.2	$52.1
Merger related costs	$0.9	$1.8	$1.1	$24.8	$2.6
Other operating expenses	$38.2	$39.7	$41.8	$38.0	$37.9
Core salaries and employee benefits (1)	$58.7	$57.2	$67.9	$63.2	$51.9
Core merger related costs (1)	-	-	-	-	-
Core other operating expenses (1)	$38.2	$38.0	$41.6	$38.0	$37.8

(1)	Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Early in 2020, the Company offered qualifying associates an early retirement option resulting in $2.3 million of non-core expense during the third quarter. The Company expects ongoing net annualized savings of approximately $2.9 million.

Management continuously evaluates the Company’s branch network as part of its analysis of the profitability of the Company’s operations and the efficiency with which it delivers banking services to its markets. As a result of this ongoing evaluation, the Company closed 11 branch locations during the second quarter of 2020, with estimated net annual cost savings of approximately $2.4 million related to these locations. The Company closed an additional 23 branch locations on October 9, 2020, with an expected net annual cost savings of approximately $6.7 million.

Asset Quality

	3rd Qtr2020	2nd Qtr2020	1st Qtr2020	4th Qtr2019	3rd Qtr2019
Allowance for credit losses on loans to total loans	1.77%	1.59%	1.69%	0.47%	0.51%
Allowance for credit losses on loans to non-performing loans	147%	175%	154%	74%	78%
Non-performing loans to total loans	1.20%	0.91%	1.10%	0.64%	0.65%
Net charge-off ratio (annualized)	0.16%	1.04%	0.07%	0.09%	0.59%
Net charge-off ratio YTD (annualized)	0.43%	0.56%	0.07%	0.24%	0.30%

At September 30, 2020, the allowance for credit losses on loans was $248.3 million. Provision for credit losses on loans for the third quarter of 2020 was $22.3 million. Included in total loans was $970.5 million of government guaranteed PPP loans. Excluding the PPP loans, the allowance for credit losses on loans to total loans was 1.90%.

Foreclosed Assets and Other Real Estate Owned

At September 30, 2020, foreclosed assets and other real estate owned were $12.6 million, a decrease of $7.0 million, or 35.7%, compared to the same period in 2019. The composition of these assets is divided into three types:        

($ in millions)	3rd Qtr2020		2nd Qtr2020		1st Qtr2020		4th Qtr2019		3rd Qtr2019
Closed bank branches and branch sites	$0.6		$2.7		$8.8		$5.7		$5.9
Foreclosed assets – acquired	$9.3		$9.2		$9.2		$10.3		$10.1
Foreclosed assets – legacy	$2.7		$2.2		$2.8		$3.1		$3.6

Capital

	3rd Qtr2020	2nd Qtr2020	1st Qtr2020	4th Qtr2019	3rd Qtr2019
Stockholders’ equity to total assets	13.7%	13.3%	13.7%	14.1%	14.3%
Tangible common equity to tangible assets (1)	8.7%	8.3%	8.4%	9.0%	9.1%
Regulatory common equity tier 1 ratio	12.6%	11.9%	11.1%	10.9%	10.3%
Regulatory tier 1 leverage ratio	9.1%	8.8%	9.0%	9.6%	9.1%
Regulatory tier 1 risk-based capital ratio	12.6%	11.9%	11.1%	10.9%	10.3%
Regulatory total risk-based capital ratio	15.8%	14.9%	14.1%	13.7%	13.2%

(1)	Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

At September 30, 2020, common stockholders' equity was $2.9 billion. Book value per share was $26.98 and tangible book value per share was $16.07 at September 30, 2020. The ratio of stockholders’ equity to total assets was 13.7% at September 30, 2020, while the ratio of tangible common equity to tangible assets was 8.7%. As of September 30, 2020, PPP loans totaled $970.5 million, which are 100% federally guaranteed and have a zero percent risk-weight for regulatory capital ratios. Excluding PPP loans from total assets, equity to total assets was 14.4%, tangible common equity to tangible assets was 9.1% and the regulatory tier 1 leverage ratio was 9.5%.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $21.4 billion as of September 30, 2020, conducting financial operations in Arkansas, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Monday, October 19, 2020. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 6533868. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com for at least 60 days.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of PPP loans. The Company’s management believes that these non-GAAP financial measures are useful to investors because they present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalizing for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB and other digital banking initiatives, the Company’s ability to recruit and retain key employees, the benefits associated with the Company’s early retirement program and completed and future branch closures, the adequacy of the allowance for credit losses, and the ability of the Company to manage the impact of the COVID-19 pandemic. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes in response to COVID-19, the severity and duration of the pandemic, including whether there is a widespread resurgence in COVID-19 infections combined with the seasonal flu, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan program authorized by the CARES Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in its Form 10-K for the year ended December 31, 2019, and its Form 10-Q for the quarter ended June 30, 2020, which have been filed with, and are available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:Stephen C. MassanelliEVP, Chief Administrative Officer and Investor Relations OfficerSimmons First National Corporationsteve.massanelli@simmonsbank.com

Simmons First National Corporation														SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	382,691		$	234,998		$	244,123		$	277,208		$	161,440
Interest bearing balances due from banks and federal funds sold		2,139,440			2,310,162			1,493,076			719,415			368,530
Cash and cash equivalents		2,522,131			2,545,160			1,737,199			996,623			529,970
Interest bearing balances due from banks - time		4,061			4,561			4,309			4,554			5,041
Investment securities - held-to-maturity		47,102			51,720			53,968			40,927			42,237
Investment securities - available-for-sale		2,607,288			2,496,896			2,466,640			3,288,343			2,210,931
Mortgage loans held for sale		192,729			120,034			49,984			58,102			50,099
Other assets held for sale		389			399			115,315			260,332			383
Loans:
Loans		14,017,442			14,606,900			14,374,277			14,425,704			13,003,549
Allowance for credit losses on loans		(248,251	)		(231,643	)		(243,195	)		(68,244	)		(66,590	)
Net loans		13,769,191			14,375,257			14,131,082			14,357,460			12,936,959
Premises and equipment		470,491			478,896			484,990			492,384			378,678
Premises held for sale		4,486			4,576			-			-			-
Foreclosed assets and other real estate owned		12,590			14,111			20,805			19,121			19,576
Interest receivable		77,352			79,772			57,039			62,707			53,966
Bank owned life insurance		257,718			256,643			255,197			254,152			234,655
Goodwill		1,075,305			1,064,765			1,064,978			1,055,520			926,648
Other intangible assets		114,460			117,823			121,673			127,340			101,149
Other assets		282,102			293,071			278,173			241,578			268,219
Total assets	$	21,437,395		$	21,903,684		$	20,841,352		$	21,259,143		$	17,758,511
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	4,451,385		$	4,608,098		$	3,572,244		$	3,741,093		$	3,044,330
Interest bearing transaction accounts and savings deposits		8,993,255			8,978,045			8,840,678			9,090,878			7,337,571
Time deposits		2,802,007			3,029,975			3,146,811			3,276,969			3,086,108
Total deposits		16,246,647			16,616,118			15,559,733			16,108,940			13,468,009
Federal funds purchased and securities sold
under agreements to repurchase		313,694			387,025			377,859			150,145			116,536
Other borrowings		1,342,769			1,393,689			1,396,829			1,297,599			1,098,395
Subordinated notes and debentures		382,739			382,604			388,396			388,260			354,223
Other liabilities held for sale		-			-			58,405			159,853			-
Accrued interest and other liabilities		209,305			219,545			214,730			165,422			174,277
Total liabilities		18,495,154			18,998,981			17,995,952			18,270,219			15,211,440
Stockholders' equity:
Preferred stock		767			767			767			767			-
Common stock		1,090			1,090			1,090			1,136			966
Surplus		2,032,372			2,029,383			2,026,420			2,117,282			1,708,058
Undivided profits		866,503			819,153			778,893			848,848			814,338
Accumulated other comprehensive income (loss):
Unrealized accretion (depreciation) on AFS securities		41,509			54,310			38,230			20,891			23,709
Total stockholders' equity		2,942,241			2,904,703			2,845,400			2,988,924			2,547,071
Total liabilities and stockholders' equity	$	21,437,395		$	21,903,684		$	20,841,352		$	21,259,143		$	17,758,511

Simmons First National Corporation													SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	163,180		$	176,910		$	187,566		$	193,402		$	179,971
Interest bearing balances due from banks and federal funds sold		623			603			2,441			2,625			1,586
Investment securities		14,910			13,473			18,943			16,962			14,467
Mortgage loans held for sale		1,012			668			281			402			382
TOTAL INTEREST INCOME		179,725			191,654			209,231			213,391			196,406
INTEREST EXPENSE
Time deposits		9,437			10,803			13,323			16,198			15,573
Other deposits		6,769			7,203			17,954			20,331			21,363
Federal funds purchased and securities
sold under agreements to repurchase		335			337			759			368			249
Other borrowings		4,943			4,963			4,877			4,615			5,381
Subordinated notes and debentures		4,631			4,667			4,835			4,813			4,576
TOTAL INTEREST EXPENSE		26,115			27,973			41,748			46,325			47,142
NET INTEREST INCOME		153,610			163,681			167,483			167,066			149,264
Provision for credit losses		22,981			21,915			23,134			4,903			21,973
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES		130,629			141,766			144,349			162,163			127,291
NON-INTEREST INCOME
Trust income		6,744			7,253			7,151			7,430			6,108
Service charges on deposit accounts		10,385			8,570			13,328			13,332			10,825
Other service charges and fees		1,764			1,489			1,588			1,915			1,308
Mortgage lending income		13,971			12,459			5,046			4,029			4,509
SBA lending income		304			245			296			321			956
Investment banking income		557			571			877			822			513
Debit and credit card fees		8,850			7,996			7,914			8,920			7,059
Bank owned life insurance income		1,591			1,445			1,298			1,411			1,302
Gain on sale of securities, net		22,305			390			32,095			377			7,374
Other income		5,380			9,809			12,801			7,073			44,721
TOTAL NON-INTEREST INCOME		71,851			50,227			82,394			45,630			84,675
NON-INTEREST EXPENSE
Salaries and employee benefits		61,144			57,644			67,924			63,235			52,065
Occupancy expense, net		9,647			9,217			9,510			9,272			8,342
Furniture and equipment expense		6,231			6,144			5,723			5,758			4,898
Other real estate and foreclosure expense		602			274			325			1,089			1,125
Deposit insurance		2,244			2,838			2,475			(134	)		-
Merger-related costs		902			1,830			1,068			24,831			2,556
Other operating expenses		38,179			39,651			41,788			38,044			37,879
TOTAL NON-INTEREST EXPENSE		118,949			117,598			128,813			142,095			106,865
NET INCOME BEFORE INCOME TAXES		83,531			74,395			97,930			65,698			105,101
Provision for income taxes		17,633			15,593			20,694			12,976			23,275
NET INCOME		65,898			58,802			77,236			52,722			81,826
Preferred stock dividends		13			13			13			13			-
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	65,885		$	58,789		$	77,223		$	52,709		$	81,826
BASIC EARNINGS PER SHARE	$	0.60		$	0.54		$	0.68		$	0.49		$	0.85
DILUTED EARNINGS PER SHARE	$	0.60		$	0.54		$	0.68		$	0.49		$	0.84

Simmons First National Corporation														SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
Tier 1 capital
Stockholders' equity	$	2,942,241		$	2,904,703		$	2,845,400		$	2,988,924		$	2,547,071
CECL transition provision (1)		134,798			130,480			134,558			-			-
Disallowed intangible assets, net of deferred tax		(1,167,357	)		(1,160,385	)		(1,164,038	)		(1,160,079	)		(1,013,309	)
Unrealized (gain) loss on AFS securities		(41,509	)		(54,310	)		(38,230	)		(20,891	)		(23,709	)
Total Tier 1 capital		1,868,173			1,820,488			1,777,690			1,807,954			1,510,053
Tier 2 capital
Trust preferred securities and subordinated debt		382,739			382,604			388,396			388,260			354,223
Qualifying allowance for loan losses and
reserve for unfunded commitments		96,734			83,780			96,015			76,644			74,455
Total Tier 2 capital		479,473			466,384			484,411			464,904			428,678
Total risk-based capital	$	2,347,646		$	2,286,872		$	2,262,101		$	2,272,858		$	1,938,731
Risk weighted assets	$	14,878,932		$	15,362,175		$	16,012,233		$	16,554,081		$	14,725,571
Adjusted average assets for leverage ratio	$	20,652,454		$	20,742,824		$	19,832,219		$	18,852,798		$	16,681,527
Ratios at end of quarter
Equity to assets		13.72	%		13.26	%		13.65	%		14.06	%		14.34	%
Tangible common equity to tangible assets (2)		8.65	%		8.31	%		8.44	%		8.99	%		9.08	%
Common equity Tier 1 ratio (CET1)		12.55	%		11.85	%		11.10	%		10.92	%		10.25	%
Tier 1 leverage ratio		9.05	%		8.78	%		8.96	%		9.59	%		9.05	%
Tier 1 risk-based capital ratio		12.56	%		11.85	%		11.10	%		10.92	%		10.25	%
Total risk-based capital ratio		15.78	%		14.89	%		14.13	%		13.73	%		13.17	%
(1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.
(2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation														SFNC
Consolidated Investment Securities
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
Mortgage-backed securities	$	24,297		$	25,980		$	27,121		$	10,796		$	11,549
State and political subdivisions		21,930			24,777			25,985			27,082			28,692
Other securities		875			963			862			3,049			1,996
Total held-to-maturity (net of credit losses)		47,102			51,720			53,968			40,927			42,237
Available-for-Sale
U.S. Treasury	$	-		$	-		$	424,989		$	449,729		$	-
U.S. Government agencies		471,973			210,921			161,289			194,249			178,139
Mortgage-backed securities		903,687			1,154,086			1,179,837			1,742,945			1,337,794
State and political subdivisions		1,133,006			1,054,068			678,243			880,524			681,202
Other securities		98,622			77,821			22,282			20,896			13,796
Total available-for-sale (net of credit losses)		2,607,288			2,496,896			2,466,640			3,288,343			2,210,931
Total investment securities (net of credit losses)	$	2,654,390		$	2,548,616		$	2,520,608		$	3,329,270		$	2,253,168
Fair value - HTM investment securities	$	49,064		$	53,751		$	55,714		$	41,855		$	43,302
Investment Securities - QTD Average
Taxable securities	$	1,534,742		$	1,642,083		$	2,324,188		$	1,940,755		$	1,561,308
Tax exempt securities		1,155,099			866,944			900,223			825,000			681,505
Total investment securities - QTD average	$	2,689,841		$	2,509,027		$	3,224,411		$	2,765,755		$	2,242,813

Simmons First National Corporation													SFNC
Consolidated Loans
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
Loan Portfolio - End of Period
Consumer
Credit cards	$	172,880		$	184,348		$	188,596		$	204,802		$	195,083
Other consumer		190,736			214,024			267,870			249,195			215,283
Total consumer		363,616			398,372			456,466			453,997			410,366
Real Estate
Construction		1,853,360			2,010,256			2,024,118			2,248,673			2,081,595
Single-family residential		1,997,070			2,207,087			2,343,543			2,414,753			1,951,842
Other commercial real estate		6,132,823			6,316,444			6,466,104			6,358,514			5,758,511
Total real estate		9,983,253			10,533,787			10,833,765			11,021,940			9,791,948
Commercial
Commercial		2,907,798			3,038,216			2,314,472			2,451,119			2,215,539
Agricultural		241,687			217,715			191,535			191,525			214,610
Total commercial		3,149,485			3,255,931			2,506,007			2,642,644			2,430,149
Other		521,088			418,810			578,039			307,123			371,086
Total Loans	$	14,017,442		$	14,606,900		$	14,374,277		$	14,425,704		$	13,003,549

Simmons First National Corporation														SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance, prior to adoption of ASC 326							$	68,244		$	66,590		$	64,179
Impact of adopting ASC 326 (1)							$	151,377
Beginning balance, after adoption of ASC 326	$	231,641		$	243,195		$	219,621
Loans charged off
Credit cards		832			1,053			1,441			1,287			1,117
Other consumer		1,091			592			1,379			1,425			1,065
Real estate		1,153			1,824			396			892			1,367
Commercial		4,327			35,687			523			459			17,778
Total loans charged off		7,403			39,156			3,739			4,063			21,327
Recoveries of loans previously charged off
Credit cards		276			272			225			287			223
Other consumer		366			301			443			304			1,422
Real estate		120			253			101			146			55
Commercial		936			98			347			77			65
Total recoveries		1,698			924			1,116			814			1,765
Net loans charged off		5,705			38,232			2,623			3,249			19,562
Provision for credit losses on loans		22,315			26,678			26,197			4,903			21,973
Balance, end of quarter	$	248,251		$	231,641		$	243,195		$	68,244		$	66,590
Non-performing assets
Non-performing loans
Nonaccrual loans	$	168,349		$	131,888		$	156,746		$	91,723		$	84,660
Loans past due 90 days or more		156			537			1,305			855			177
Total non-performing loans		168,505			132,425			158,051			92,578			84,837
Other non-performing assets
Foreclosed assets and other real estate owned		12,590			14,111			20,805			19,121			19,576
Other non-performing assets		1,983			2,008			2,169			1,964			540
Total other non-performing assets		14,573			16,119			22,974			21,085			20,116
Total non-performing assets	$	183,078		$	148,544		$	181,025		$	113,663		$	104,953
Performing TDRs (troubled debt restructurings)	$	2,791		$	3,960		$	4,110		$	4,411		$	6,519
Ratios
Allowance for credit losses on loans to total loans		1.77	%		1.59	%		1.69	%		0.47	%		0.51	%
Allowance for credit losses to non-performing loans		147	%		175	%		154	%		74	%		78	%
Non-performing loans to total loans		1.20	%		0.91	%		1.10	%		0.64	%		0.65	%
Non-performing assets (including performing TDRs)
to total assets		0.87	%		0.70	%		0.89	%		0.56	%		0.63	%
Non-performing assets to total assets		0.85	%		0.68	%		0.87	%		0.53	%		0.59	%
Annualized net charge offs to total loans		0.16	%		1.04	%		0.07	%		0.09	%		0.59	%
Annualized net credit card charge offs to
total credit card loans		1.26	%		1.67	%		2.29	%		1.99	%		1.82	%
(1) The Company adopted ASC 326.effective January 1, 2020.

Simmons First National Corporation																									SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months EndedSep 2020									Three Months EndedJun 2020									Three Months EndedSep 2019
($ in thousands)	AverageBalance			Income/Expense			Yield/Rate			AverageBalance			Income/Expense			Yield/Rate			AverageBalance			Income/Expense			Yield/Rate
ASSETS
Earning assets:
Interest bearing balances due from banks
and federal funds sold	$	2,265,233		$	623		0.11	%		$	2,190,878		$	603		0.11	%		$	344,761		$	1,586		1.83	%
Investment securities - taxable		1,534,742			7,193		1.86	%			1,642,083			7,131		1.75	%			1,561,308			9,514		2.42	%
Investment securities - non-taxable (FTE)		1,155,099			10,382		3.58	%			866,944			8,434		3.91	%			681,505			6,687		3.89	%
Mortgage loans held for sale		145,226			1,012		2.77	%			86,264			668		3.11	%			39,551			382		3.83	%
Loans (FTE)		14,315,014			163,379		4.54	%			14,731,306			177,168		4.84	%			13,053,540			180,080		5.47	%
Total interest earning assets (FTE)		19,415,314			182,589		3.74	%			19,517,475			194,004		4.00	%			15,680,665			198,249		5.02	%
Non-earning assets		2,350,007									2,304,798									2,039,933
Total assets	$	21,765,321								$	21,822,273								$	17,720,598
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts	$	8,977,886		$	6,769		0.30	%		$	9,138,563		$	7,203		0.32	%		$	7,322,395		$	21,363		1.16	%
Time deposits		2,998,091			9,437		1.25	%			3,057,153			10,803		1.42	%			3,122,422			15,573		1.98	%
Total interest bearing deposits		11,975,977			16,206		0.54	%			12,195,716			18,006		0.59	%			10,444,817			36,936		1.40	%
Federal funds purchased and securities
sold under agreement to repurchase		386,631			335		0.34	%			392,633			337		0.35	%			123,883			249		0.80	%
Other borrowings		1,357,278			4,943		1.45	%			1,395,109			4,963		1.43	%			1,127,886			5,381		1.89	%
Subordinated notes and debentures		382,672			4,631		4.81	%			387,422			4,667		4.84	%			354,178			4,576		5.13	%
Total interest bearing liabilities		14,102,558			26,115		0.74	%			14,370,880			27,973		0.78	%			12,050,764			47,142		1.55	%
Non-interest bearing liabilities:
Non-interest bearing deposits		4,529,782									4,354,781									3,012,544
Other liabilities		190,169									216,508									288,517
Total liabilities		18,822,509									18,942,169									15,351,825
Stockholders' equity		2,942,812									2,880,104									2,368,773
Total liabilities and stockholders' equity	$	21,765,321								$	21,822,273								$	17,720,598
Net interest income (FTE)				$	156,474								$	166,031								$	151,107
Net interest spread (FTE)							3.00	%								3.22	%								3.47	%
Net interest margin (FTE) - quarter-to-date							3.21	%								3.42	%								3.82	%
Net interest margin (FTE) - year-to-date							3.43	%								3.55	%								3.88	%
Core net interest margin (FTE) - quarter-to-date (1)							3.02	%								3.18	%								3.59	%
Core loan yield (FTE) - quarter-to-date (1)							4.29	%								4.52	%								5.19	%
Core net interest margin (FTE) - year-to-date (1)							3.20	%								3.30	%								3.64	%
Core loan yield (FTE) - year-to-date (1)							4.56	%								4.69	%								5.24	%
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income	$	65,885		$	58,789		$	77,223		$	52,709		$	81,826
Diluted earnings per share		0.60			0.54			0.68			0.49			0.84
Return on average assets		1.20	%		1.08	%		1.48	%		1.04	%		1.83	%
Return on average common equity		8.91	%		8.21	%		10.83	%		8.01	%		13.70	%
Return on tangible common equity		15.45	%		14.55	%		19.00	%		14.62	%		24.89	%
Net interest margin (FTE)		3.21	%		3.42	%		3.68	%		3.78	%		3.82	%
FTE adjustment		2,864			2,350			2,305			2,172			1,843
Amortization of intangibles		3,362			3,369			3,413			3,270			2,947
Amortization of intangibles, net of taxes		2,483			2,489			2,521			2,416			2,176
Average diluted shares outstanding		109,207,294			109,130,866			113,137,223			108,472,559			96,968,775
Shares repurchased under plan		-			-			4,922,336			390,000			-
Average price of shares repurchased		-			-			18.96			25.95			-
Cash dividends declared per common share		0.17			0.17			0.17			0.16			0.16
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	68,338		$	60,147		$	73,838		$	71,074		$	83,963
Core diluted earnings per share (1)		0.63			0.55			0.65			0.66			0.87
Core net interest margin (FTE) (2)		3.02	%		3.18	%		3.42	%		3.44	%		3.59	%
Accretable yield on acquired loans		8,948			11,723			11,837			15,100			9,322
Efficiency ratio (1)		54.12	%		51.46	%		57.79	%		52.63	%		43.77	%
Core return on average assets (1)		1.25	%		1.11	%		1.42	%		1.41	%		1.88	%
Core return on average common equity (1)		9.24	%		8.40	%		10.35	%		10.80	%		14.06	%
Core return on tangible common equity (1)		16.00	%		14.87	%		18.19	%		19.49	%		25.52	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income	$	201,897		$	136,012		$	77,223		$	237,828		$	185,119
Diluted earnings per share		1.83			1.22			0.68			2.41			1.94
Return on average assets		1.25	%		1.28	%		1.48	%		1.33	%		1.44	%
Return on average common equity		9.27	%		9.45	%		10.83	%		9.93	%		10.65	%
Return on tangible common equity		16.19	%		16.57	%		19.00	%		17.99	%		19.27	%
Net interest margin (FTE)		3.43	%		3.55	%		3.68	%		3.85	%		3.88	%
FTE adjustment		7,519			4,655			2,305			7,322			5,150
Amortization of intangibles		10,144			6,782			3,413			11,805			8,535
Amortization of intangibles, net of taxes		7,493			5,010			2,521			8,720			6,304
Average diluted shares outstanding		110,480,508			111,083,999			113,137,223			98,796,628			95,450,732
Cash dividends declared per common share		0.51			0.34			0.17			0.64			0.48
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	202,323		$	133,985		$	73,838		$	269,566		$	198,492
Core diluted earnings per share (1)		1.83			1.21			0.65			2.73			2.08
Core net interest margin (FTE) (2)		3.20	%		3.30	%		3.42	%		3.59	%		3.64	%
Accretable yield on acquired loans		32,508			23,560			11,837			41,244			26,144
Efficiency ratio (1)		54.46	%		54.62	%		57.79	%		50.33	%		49.49	%
Core return on average assets (1)		1.26	%		1.26	%		1.42	%		1.51	%		1.55	%
Core return on average common equity (1)		9.29	%		9.31	%		10.35	%		11.25	%		11.42	%
Core return on tangible common equity (1)		16.22	%		16.33	%		18.19	%		20.31	%		20.62	%
END OF PERIOD
Book value per share	$	26.98		$	26.64		$	26.11		$	26.30		$	26.36
Tangible book value per share		16.07			15.79			15.22			15.89			15.73
Shares outstanding		109,023,781			108,994,389			108,966,331			113,628,601			96,613,855
Full-time equivalent employees		2,904			2,939			3,079			3,270			2,701
Total number of financial centers		226			226			240			251			212
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation														SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	65,885		$	58,789		$	77,223		$	52,709		$	81,826
Non-core items
Gain on sale of branches		-			(2,204	)		(5,889	)		-			-
Merger-related costs		902			1,830			1,068			24,831			2,556
Early retirement program		2,346			493			-			-			177
Branch right-sizing (net)		72			1,721			238			37			160
Tax effect (1)		(867	)		(482	)		1,198			(6,503	)		(756	)
Net non-core items		2,453			1,358			(3,385	)		18,365			2,137
Core earnings (non-GAAP)	$	68,338		$	60,147		$	73,838		$	71,074		$	83,963
Diluted earnings per share	$	0.60		$	0.54		$	0.68		$	0.49		$	0.84
Non-core items
Gain on sale of branches		-			(0.02	)		(0.05	)		-			-
Merger-related costs		0.01			0.02			0.01			0.23			0.04
Early retirement program		0.02			-			-			-			-
Branch right-sizing (net)		-			0.02			-			-			-
Tax effect (1)		-			(0.01	)		0.01			(0.06	)		(0.01	)
Net non-core items		0.03			0.01			(0.03	)		0.17			0.03
Core diluted earnings per share (non-GAAP)	$	0.63		$	0.55		$	0.65		$	0.66		$	0.87
YEAR-TO-DATE
Net Income	$	201,897		$	136,012		$	77,223		$	237,828		$	185,119
Non-core items
Gain on sale of branches		(8,093	)		(8,093	)		(5,889	)		-			-
Merger-related costs		3,800			2,898			1,068			36,379			11,548
Early retirement program		2,839			493			-			3,464			3,464
Branch right-sizing (net)		2,031			1,959			238			3,129			3,092
Tax effect (1)		(151	)		716			1,198			(11,234	)		(4,731	)
Net non-core items		426			(2,027	)		(3,385	)		31,738			13,373
Core earnings (non-GAAP)	$	202,323		$	133,985		$	73,838		$	269,566		$	198,492
Diluted earnings per share	$	1.83		$	1.22		$	0.68		$	2.41		$	1.94
Non-core items
Gain on sale of branches		(0.07	)		(0.07	)		(0.05	)		-			-
Merger-related costs		0.03			0.03			0.01			0.37			0.12
Early retirement program		0.02			-			-			0.03			0.04
Branch right-sizing (net)		0.02			0.02			-			0.03			0.03
Tax effect (1)		-			0.01			0.01			(0.11	)		(0.05	)
Net non-core items		-			(0.01	)		(0.03	)		0.32			0.14
Core diluted earnings per share (non-GAAP)	$	1.83		$	1.21		$	0.65		$	2.73		$	2.08
(1) Effective tax rate of 26.135%.
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP)
QUARTER-TO-DATE
Other income	$	5,380		$	9,809		$	12,801		$	7,073		$	44,721
Non-core items (1)		(370	)		(2,204	)		(5,889	)		-			-
Core other income (non-GAAP)	$	5,010		$	7,605		$	6,912		$	7,073		$	44,721
Non-interest expense	$	118,949		$	117,598		$	128,813		$	142,095		$	106,865
Non-core items (1)		(3,690	)		(4,044	)		(1,306	)		(24,868	)		(2,893	)
Core non-interest expense (non-GAAP)	$	115,259		$	113,554		$	127,507		$	117,227		$	103,972
Salaries and employee benefits	$	61,144		$	57,644		$	67,924		$	63,235		$	52,065
Non-core items (1)		(2,448	)		(493	)		-			-			(176	)
Core salaries and employee benefits (non-GAAP)	$	58,696		$	57,151		$	67,924		$	63,235		$	51,889
Merger related costs	$	902		$	1,830		$	1,068		$	24,831		$	2,556
Non-core items (1)		(902	)		(1,830	)		(1,068	)		(24,831	)		(2,556	)
Core merger related costs (non-GAAP)	$	-		$	-		$	-		$	-		$	-
Other operating expenses	$	38,179		$	39,651		$	41,788		$	38,044		$	37,881
Non-core items (1)		(11	)		(1,662	)		(212	)		(4	)		(90	)
Core other operating expenses (non-GAAP)	$	38,168		$	37,989		$	41,576		$	38,040		$	37,791
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right sizing costs.

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands, except per share data)
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total common stockholders' equity	$	2,941,474		$	2,903,936		$	2,844,633		$	2,988,157		$	2,547,071
Intangible assets:
Goodwill		(1,075,305	)		(1,064,765	)		(1,064,978	)		(1,055,520	)		(926,648	)
Other intangible assets		(114,460	)		(117,823	)		(121,673	)		(127,340	)		(101,149	)
Total intangibles		(1,189,765	)		(1,182,588	)		(1,186,651	)		(1,182,860	)		(1,027,797	)
Tangible common stockholders' equity	$	1,751,709		$	1,721,348		$	1,657,982		$	1,805,297		$	1,519,274
Total assets	$	21,437,395		$	21,903,684		$	20,841,352		$	21,259,143		$	17,758,511
Intangible assets:
Goodwill		(1,075,305	)		(1,064,765	)		(1,064,978	)		(1,055,520	)		(926,648	)
Other intangible assets		(114,460	)		(117,823	)		(121,673	)		(127,340	)		(101,149	)
Total intangibles		(1,189,765	)		(1,182,588	)		(1,186,651	)		(1,182,860	)		(1,027,797	)
Tangible assets	$	20,247,630		$	20,721,096		$	19,654,701		$	20,076,283		$	16,730,714
Paycheck protection program ("PPP") loans		(970,488	)		(963,712	)
Total assets less PPP loans	$	20,466,907		$	20,939,972
Tangible assets less PPP loans	$	19,277,142		$	19,757,384
Ratio of equity to assets		13.72	%		13.26	%		13.65	%		14.06	%		14.34	%
Ratio of equity to assets less PPP loans		14.38	%		13.87	%
Ratio of tangible common equity to tangible assets		8.65	%		8.31	%		8.44	%		8.99	%		9.08	%
Ratio of tangible common equity to tangible assets less PPP loans		9.09	%		8.71	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity	$	2,941,474		$	2,903,936		$	2,844,633		$	2,988,157		$	2,547,071
Intangible assets:
Goodwill		(1,075,305	)		(1,064,765	)		(1,064,978	)		(1,055,520	)		(926,648	)
Other intangible assets		(114,460	)		(117,823	)		(121,673	)		(127,340	)		(101,149	)
Total intangibles		(1,189,765	)		(1,182,588	)		(1,186,651	)		(1,182,860	)		(1,027,797	)
Tangible common stockholders' equity	$	1,751,709		$	1,721,348		$	1,657,982		$	1,805,297		$	1,519,274
Shares of common stock outstanding		109,023,781			108,994,389			108,966,331			113,628,601			96,613,855
Book value per common share	$	26.98		$	26.64		$	26.11		$	26.30		$	26.36
Tangible book value per common share	$	16.07		$	15.79		$	15.22		$	15.89		$	15.73
Calculation of Regulatory Tier 1 Leverage Ratio Less Average PPP Loans
Total Tier 1 capital	$	1,868,173		$	1,820,488
Adjusted average assets for leverage ratio	$	20,652,454		$	20,742,824
Average PPP loans		(967,152	)		(645,172	)
Adjusted average assets less average PPP loans	$	19,685,302		$	20,097,652
Tier 1 leverage ratio		9.05	%		8.78	%
Tier 1 leverage ratio less average PPP loans		9.49	%		9.06	%

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	65,885		$	58,789		$	77,223		$	52,709		$	81,826
Net non-core items, net of taxes, adjustment		2,453			1,358			(3,385	)		18,365			2,137
Core earnings	$	68,338		$	60,147		$	73,838		$	71,074		$	83,963
Average total assets	$	21,765,321		$	21,822,273		$	20,920,223		$	20,041,890		$	17,720,598
Return on average assets		1.20	%		1.08	%		1.48	%		1.04	%		1.83	%
Core return on average assets		1.25	%		1.11	%		1.42	%		1.41	%		1.88	%
Calculation of Return on Tangible Common Equity
Net income	$	65,885		$	58,789		$	77,223		$	52,709		$	81,826
Amortization of intangibles, net of taxes		2,483			2,489			2,521			2,416			2,176
Total income available to common stockholders	$	68,368		$	61,278		$	79,744		$	55,125		$	84,002
Net non-core items, net of taxes		2,453			1,358			(3,385	)		18,365			2,137
Core earnings		68,338			60,147			73,838			71,074			83,963
Amortization of intangibles, net of taxes		2,483			2,489			2,521			2,416			2,176
Total core income available to common stockholders	$	70,821		$	62,636		$	76,359		$	73,490		$	86,139
Average common stockholders' equity	$	2,942,045		$	2,879,337		$	2,869,177		$	2,611,143		$	2,368,773
Average intangible assets:
Goodwill		(1,064,893	)		(1,064,955	)		(1,055,498	)		(997,004	)		(926,687	)
Other intangibles		(116,385	)		(120,111	)		(125,746	)		(118,311	)		(103,028	)
Total average intangibles		(1,181,278	)		(1,185,066	)		(1,181,244	)		(1,115,315	)		(1,029,715	)
Average tangible common stockholders' equity	$	1,760,767		$	1,694,271		$	1,687,933		$	1,495,828		$	1,339,058
Return on average common equity		8.91	%		8.21	%		10.83	%		8.01	%		13.70	%
Return on tangible common equity		15.45	%		14.55	%		19.00	%		14.62	%		24.89	%
Core return on average common equity		9.24	%		8.40	%		10.35	%		10.80	%		14.06	%
Core return on tangible common equity		16.00	%		14.87	%		18.19	%		19.49	%		25.52	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	118,949		$	117,598		$	128,813		$	142,095		$	106,865
Non-core non-interest expense adjustment		(3,690	)		(4,044	)		(1,306	)		(24,868	)		(2,893	)
Other real estate and foreclosure expense adjustment		(600	)		(242	)		(319	)		(1,063	)		(1,057	)
Amortization of intangibles adjustment		(3,362	)		(3,369	)		(3,413	)		(3,270	)		(2,947	)
Efficiency ratio numerator	$	111,297		$	109,943		$	123,775		$	112,894		$	99,968
Net-interest income	$	153,610		$	163,681		$	167,483		$	167,066		$	149,264
Non-interest income		71,851			50,227			82,394			45,630			84,675
Non-core non-interest income adjustment		(370	)		(2,204	)		(5,889	)		-			-
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		2,864			2,350			2,305			2,172			1,843
Gain on sale of securities		(22,305	)		(390	)		(32,095	)		(377	)		(7,374	)
Efficiency ratio denominator	$	205,650		$	213,664		$	214,198		$	214,491		$	228,408
Efficiency ratio (1)		54.12	%		51.46	%		57.79	%		52.63	%		43.77	%
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)
For the Quarters Ended	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
(Unaudited)		2020			2020			2020			2019			2019
($ in thousands)
Calculation of Core Net Interest Margin
Net interest income	$	153,610		$	163,681		$	167,483		$	167,066		$	149,264
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		2,864			2,350			2,305			2,172			1,843
Fully tax-equivalent net interest income		156,474			166,031			169,788			169,238			151,107
Total accretable yield		(8,948	)		(11,723	)		(11,837	)		(15,100	)		(9,322	)
Core net interest income	$	147,526		$	154,308		$	157,951		$	154,138		$	141,785
PPP loan and excess liquidity interest income		(6,131	)	$	(5,623	)
Net interest income adjusted for PPP loans and liquidity	$	150,343		$	160,408
Average earning assets	$	19,415,314		$	19,517,475		$	18,581,491		$	17,753,004		$	15,680,665
Average PPP loan balance and excess liquidity		(2,359,928	)		(2,071,411	)
Average earning assets adjusted for PPL loans and liquidity	$	17,055,386		$	17,446,064
Net interest margin		3.21	%		3.42	%		3.68	%		3.78	%		3.82	%
Core net interest margin		3.02	%		3.18	%		3.42	%		3.44	%		3.59	%
Net interest margin adjusted for PPP loans and liquidity		3.51	%		3.70	%
Calculation of Core Loan Yield
Loan interest income (FTE)	$	163,379		$	177,168		$	187,566		$	193,402		$	179,971
Total accretable yield		(8,948	)		(11,723	)		(11,837	)		(15,100	)		(9,322	)
Core loan interest income	$	154,431		$	165,445		$	175,729		$	178,302		$	170,649
PPP loan interest income		(5,782	)		(3,733	)
Core loan interest income without PPP loans	$	148,649		$	161,712
Average loan balance	$	14,315,014		$	14,731,306		$	14,548,853		$	14,144,703		$	13,053,540
Average PPP loan balance		(967,152	)	$	(645,172	)
Average loan balance without PPP loans	$	13,347,862		$	14,086,134
Core loan yield		4.29	%		4.52	%		4.86	%		5.00	%		5.19	%
Core loan yield without PPP loans		4.43	%		4.62	%
Calculation of Pre-Tax, Pre-Provision (PTPP) Earnings
Net income available to common stockholders	$	65,885		$	58,789		$	77,223		$	52,709		$	81,826
Provision for income taxes		17,633			15,593			20,694			12,976			23,275
Provision for credit losses (including provision for unfunded commitments)		22,981			21,915			23,134			4,903			21,973
(Gain) loss on sale of securities		(22,305	)		(390	)		(32,095	)		(377	)		(7,374	)
Net pre-tax non-core items		3,320			1,840			(4,583	)		24,868			2,893
Pre-tax, pre-provision (PTPP) earnings	$	87,514		$	97,747		$	84,373		$	95,079		$	122,593

Simmons First National Corporation														SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited)	Sep 30			Jun 30			Mar 31			Dec 31			Sep 30
		2020			2020			2020			2019			2019
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	201,897		$	136,012		$	77,223		$	237,828		$	185,119
Net non-core items, net of taxes, adjustment		426			(2,027	)		(3,385	)		31,738			13,373
Core earnings	$	202,323		$	133,985		$	73,838		$	269,566		$	198,492
Average total assets	$	21,503,564		$	21,371,248		$	20,920,223		$	17,871,748		$	17,140,419
Return on average assets		1.25	%		1.28	%		1.48	%		1.33	%		1.44	%
Core return on average assets		1.26	%		1.26	%		1.42	%		1.51	%		1.55	%
Calculation of Return on Tangible Common Equity
Net income	$	201,897		$	136,012		$	77,223		$	237,828		$	185,119
Amortization of intangibles, net of taxes		7,493			5,010			2,521			8,720			6,304
Total income available to common stockholders	$	209,390		$	141,022		$	79,744		$	246,548		$	191,423
Net non-core items, net of taxes		426			(2,027	)		(3,385	)		31,738			13,373
Core earnings		202,323			133,985			73,838			269,566			198,492
Amortization of intangibles, net of taxes		7,493			5,010			2,521			8,720			6,304
Total core income available to common stockholders	$	209,816		$	138,995		$	76,359		$	278,286		$	204,796
Average common stockholders' equity	$	2,910,366		$	2,894,351		$	2,869,177		$	2,396,024		$	2,323,530
Average intangible assets:
Goodwill		(1,061,793	)		(1,060,226	)		(1,055,498	)		(921,635	)		(896,236	)
Other intangibles		(120,731	)		(122,928	)		(125,746	)		(104,000	)		(99,178	)
Total average intangibles		(1,182,524	)		(1,183,154	)		(1,181,244	)		(1,025,635	)		(995,414	)
Average tangible common stockholders' equity	$	1,727,842		$	1,711,197		$	1,687,933		$	1,370,389		$	1,328,116
Return on average common equity		9.27	%		9.45	%		10.83	%		9.93	%		10.65	%
Return on tangible common equity		16.19	%		16.57	%		19.00	%		17.99	%		19.27	%
Core return on average common equity		9.29	%		9.31	%		10.35	%		11.25	%		11.42	%
Core return on tangible common equity		16.22	%		16.33	%		18.19	%		20.31	%		20.62	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	365,360		$	246,411		$	128,813		$	461,112		$	319,017
Non-core non-interest expense adjustment		(9,040	)		(5,350	)		(1,306	)		(42,972	)		(18,104	)
Other real estate and foreclosure expense adjustment		(1,161	)		(561	)		(319	)		(3,282	)		(2,219	)
Amortization of intangibles adjustment		(10,144	)		(6,782	)		(3,413	)		(11,805	)		(8,535	)
Efficiency ratio numerator	$	345,015		$	233,718		$	123,775		$	403,053		$	290,159
Net-interest income	$	484,774		$	331,164		$	167,483		$	601,753		$	434,687
Non-interest income		204,472			132,621			82,394			205,031			159,401
Non-core non-interest income adjustment		(8,463	)		(8,093	)		(5,889	)		-			-
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		7,519			4,655			2,305			7,322			5,150
Gain on sale of securities		(54,790	)		(32,485	)		(32,095	)		(13,314	)		(12,937	)
Efficiency ratio denominator	$	633,512		$	427,862		$	214,198		$	800,792		$	586,301
Efficiency ratio (1)		54.46	%		54.62	%		57.79	%		50.33	%		49.49	%
Calculation of Core Net Interest Margin
Net interest income	$	484,774		$	331,164		$	167,483		$	601,753		$	434,687
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		7,519			4,655			2,305			7,322			5,150
Fully tax-equivalent net interest income		492,293			335,819			169,788			609,075			439,837
Total accretable yield		(32,508	)		(23,560	)		(11,837	)		(41,244	)		(26,144	)
Core net interest income	$	459,785		$	312,259		$	157,951		$	567,831		$	413,693
Average earning assets	$	19,172,318		$	19,049,487		$	18,581,491		$	15,824,571		$	15,174,671
Net interest margin		3.43	%		3.55	%		3.68	%		3.85	%		3.88	%
Core net interest margin		3.20	%		3.30	%		3.42	%		3.59	%		3.64	%
Calculation of Core Loan Yield
Loan interest income (FTE)	$	528,294		$	364,915		$	187,566		$	710,935		$	517,533
Total accretable yield		(32,508	)		(23,560	)		(11,837	)		(41,244	)		(26,144	)
Core loan interest income	$	495,786		$	341,355		$	175,729		$	669,691		$	491,389
Average loan balance	$	14,530,938		$	14,640,082		$	14,548,853		$	12,938,013		$	12,531,355
Core loan yield		4.56	%		4.69	%		4.86	%		5.18	%		5.24	%
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully
taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.